At the beginning of March, Euromonitor International attended Natural Products Expo West – one of the largest trade shows in the world focused exclusively on natural, organic and healthier consumer products. Held annually in Anaheim, California, the event brings together the new and emerging brands in these categories with key distributors, retail buyers and other industry professionals. The event is an important showcase and launching pad for the latest trends in natural product innovation – particularly in the world of functional and better for you (BFY) soft drinks.
Premium natural and functional products are key to kickstarting growth in global soft drinks
Litre volume within the global soft drinks industry slowed significantly over 2023 and 2024, although retail value grew by mid-single digits thanks to higher pricing across the board. Weaker volume growth was largely a consequence of record increases in selling price, leading to smaller basket sizes and trips as consumers cut back on spending.
Globally, new brand and sub-brand product launches in soft drinks across online retailers increased by 12% in 2024, signalling a renewed push following a more selective approach in 2023, when producers and retailers prioritised fewer, higher-return innovations.
So, in the context of last month’s Expo West trade show – what areas are likely to demonstrate staying power with consumers? And where should brands in soft drinks place their bets?
1. Bolder, brighter and BFY carbonates explore new flavour frontiers
Beverage brands are venturing into new territories with experimental flavour mashups, globally-inspired twists, and vibrant exotic fruits – from spicy agua frescas to tropical blends. At the same time, there’s a growing shift towards lower sugar content, achieved through natural sweeteners (honey, juice, cane sugar or stevia) or reduced overall levels of sweetness in flavour profiles. Functional benefits – such as the recent surge in prebiotic options – remain a welcome bonus rather than the main selling point, helping these innovative BFY drinks stand out on shelves and refresh the category’s image in retail.
Compelling examples include Fresh Fizz Soda, a certified organic sparkling drink with “real food” ingredients and a honey and juice sweetener combination. New US sparkling options like Spade Premium Natural Soda cleverly link BFY credentials with hydration-boosting electrolytes, while New Zealand-based Sidekick reinvented the “shrub” fruit juice concentrate + organic ACV concept, picked up by premium West Coast retailer, Erewhon. Bear Maple Farms also introduced a creative natural functional sparkling drink combining the benefits of ginseng with sparkling maple water.
2. Elevated alcohol alternatives as non-alcohol enters a new era of innovation
The non-alcoholic beer segment is premiumising with refined taste profiles and bold positioning, while canned mocktails are enjoying a surge of creativity and, often, functional perks. These sophisticated adult beverages create new, high-value drinking occasions – perfect for “zebra striping”, a trend where consumers alternate between alcoholic and non-alcoholic options on a night out. On menus, flavoured NARTD is becoming a differentiator, proving that zero proof can still pack a flavourful punch.
Lapos Negroni from The Zero Proof Company has come close to perfecting the taste profile of the negroni cocktail, while Bero Non-Alcoholic Brew offers styles and flavour profiles (pils, IPA and wheat beer) that very closely mirror the style and experience of traditional beer. Producers like Luna Bay Yerba Mate Tea Beverages and Jas alcohol-free functional cocktails introduce a functional spin to classic mocktail flavours, using ingredients like yerba mate to introduce a small amount of caffeine to the adult soft drink for an evening boost.
3. Reinventing juice through “essentials” as the category grapples with supply and sugar
With cost and agricultural supply challenges looming – plus growing concern over the sugar in 100% fruit juice – juice is evolving towards functional formulations. Brands are spotlighting the natural health halo of fruits and vegetables while adding beneficial ingredients to bolster nutrition. The next wave of juice might look more like a “drinkable fruit and veggie” blend rather than the traditional fruit-only approach, helping energise the segment and keep it relevant to wellness-minded consumers.
Brands like Suja, while also launching a revived version of nostalgia brand Slice soda (reimagined as a prebiotic sparkling option), now lean into the idea of green juices and “juice with a boost” functional propositions. New launches from Odwalla also emphasise nutrient quality, a premium perception and on-the-go product formats.
4. Leisure and lifestyle as hydration stays fashionable
From single-serve powders to sleek hydration accessories, the focus on everyday wellness through better hydration is driving an explosion of new products. Lifestyle and leisure hydration has become more than just quenching thirst – it’s about personal expression and proactive health. Big players like Gatorade are jumping in with powdered offerings (the new Gatorade Hydration Booster powder), and we’re seeing more formulas that pair hydration with added benefits like inflammation support or collagen for skin, hair and nails. Hydration NPD is now the ultimate fusion of function and fashion in CPG.
Leisure Hydration has emerged as one of the big recent success stories in US soft drinks, entering premium US supermarket chain Whole Foods in 2025 with a canned electrolyte drink geared to a younger consumer demographic. New entrant Wave Sparkling Refreshers brings bubbles to a hydration-orientated option, while Local Weather sports drink innovates in the “casual hydration” space with one of the only resealable, canned options in mainstream sports drinks still effectively dominated by single-use PET.
5. Beyond energy: Focus and productivity drinks
Now that gut-health beverages have gone mainstream thanks to PepsiCo’s acquisition of Poppi, the next frontier of functional may be focus. These drinks go beyond simple energy boosts, tapping into consumers’ growing demand for productivity and mental clarity – whether for work, study or exercise. As supplements and beverages continue to blur, expect more sophisticated “focus-forward” formulations designed to support a sharper mind and better performance in everyday life.
Avro Intelligent Hydration, interestingly, combines GABA as a hero ingredient in a convenient powdered format, promising stress management and focus without crash. Klar Energy + Hydration also brings an energy and focus proposition to the powder mix category, with 150mg of caffeine, taurine, l-tyrosine combined with electrolytes, and zero sugar, aiming for focus and productivity messaging. The curiously named Gym Weed has also undergone a rebrand and repackaging programme, aiming to carve out a unique proposition for natural, active consumers seeking both hydration and energy for athletic performance.